By Dev K. Ramchandani. Sr. Director and Head of Management Consulting (APAC) at Hitachi Vantara
Malaysia’s manufacturing sector is a major driver of GDP, with a 23.3 percent share of production contribution in 2020Q4.The sector has deep forward and backward linkages with several critical segments and has a strong multiplier effect on the sectors associated with it. However, this year, Malaysia’s manufacturers continue to be affected by the Covid-19 outbreak.
Covid-19 has undoubtedly rocked the manufacturing operations and supply chain. While factories are allowed to operate, the restriction of borders and disruption in raw materials, production, logistics and exports are creating multiple challenges for smooth operations. Given the dependence on foreign labour and critical imports, Manufacturers are finding it extremely difficult to manage operations.
As the Covid-19 pandemic continues to build uncertainty and manufacturers try to get operations on track, the key focus will continue to be in addressing operational challenges around safety and employee welfare along with managing ever-changing external challenges. Besides this, it is imperative for manufacturers to strategize and develop a roadmap for digital transformation.
According to Randstad’s market outlook study, Malaysia’s manufacturing industry will remain resilient in 2021, attributed to accelerated digitalisation in the industry, as manufacturers increasingly adopt advanced technologies such as the Internet of Things (IoT) and artificial intelligence (AI). Both these technologies are the key drivers of digital transformation and Industry 4.0.
While facing a pandemic crisis, resilience will equip manufacturers with the capacity to quickly recover from challenges and also make them future ready.
Recreating manufacturing for next generation operations
Manufacturers will have to manage operations based on the requirements at the time. This may need manufacturers to “shutdown, retool, resupply, restart” with limited heads-up to plan. This further reinforces the need to embark on the Intelligent Manufacturing Journey by addressing dimensions of waste, variability and inflexibility to improve upon critical elements of Safety, Quality, Productivity, Cost, Delivery & Morale (SQPCDM). This would also entail a journey from Data Visualization, Integration to Advanced Analytics (Predictive, Prescriptive) and Symbiotic operations, which would enhance the overall resilience.
Securing the foundation means keeping employees safe and productive, which will depend on solutions that can test for and find hazardous situations. Visibility into all aspects of the supply chain will drive resilience by identifying risks, enabling scenario planning and providing options for quick pivots. Meeting market demand as it changes will require dynamic scheduling that can lead to the efficient production of orders in real or near-real time.
Hitachi’s solutions, unique Lumada technology and other innovative automated and digital solutions, are able to address every aspect of the pyramid. For example, in the case of Covid-19, thermal scanning cameras can identify elevated body temperatures. Video monitoring can assess personal protective equipment (PPE) usage. In addition, imagery and analytics will enable fast and accurate contact tracing.
Building resilience for the long term
The future of manufacturing depends on modernised, optimised and automated processes for operations, supply chains and production, as well as across every aspect of manufacturing operations, spread across the dimensions of SQPCDM.
Every company has been challenged by Covid-19 in terms of how much and how quickly it can change and adapt. This will not be the final time companies are tested. Whether it is another pandemic, a natural disaster or changing customer demands, manufacturers must be resilient. They must be able to quickly respond to both outside and internal forces, in order to deliver solutions that meet customer needs and make the world a better place. How are you thinking about this new environment and the potential forces that could disrupt your business? What are you doing now to ensure your company is resilient in the near future?
Hitachi offers a full suite of digital manufacturing solutions and consulting services. We can help you solve today’s challenges and prepare for the manufacturing industry of tomorrow. By leveraging on our powerful IT and operational technology experience and our industry-specific expertise, we can collaborate with you to envision, architect and accelerate your digital transformation so your factory can be more adaptive and responsive, both now and in the future.
